Slide 1: PALFINGER AG: Presentation on the results for the first quarter of 2016
PALFINGER AG Strong demand from Europe as a growth engine Presentation on the results for the first quarter of 2016 April 2016
Slide 2: Ongoing market volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) AREA UNITS from 2008 to 2015: +388% EUROPEAN UNITS from 2008 to 2015: +19% 400 EUR 92.2m 300 EUR 22.5m EUR 226.6m 200 EUR 186.5m 100 Total revenue (45%) +243% since 2009 0 2008 2009 2010 2011 2012 2013 2014 2015 Internationalization
Slide 3: Highlights Q1
HIGHLIGHTS Q1 Q1 2016 marked by revenue growth and substantial increase in earnings » Growth achieved in Europe and North America » Demand for loader cranes strong in Europe » Local value creation in Russia proved its worth » Joint venture with SANY in China was successful » Marine business affected
Slide 4: Strategic highlights Q1
STRATEGIC HIGHLIGHTS Q1 Acquisition of distribution partner in Spain and foundation of PALFINGER Ibérica » 75% share held by PALFINGER » Sale of loader cranes, timber and recycling cranes, hooklifts, access platforms and marine products in Spain and Portugal » Market gradually recovering from total
Slide 5: Strategic targets 2017
STRATEGIC TARGETS 2017 Growth, primarily in North America, CIS, China and the marine business Completion of product portfolio in all regions Development of China into second domestic market Global balance of production and proximity to customers Expansion of market position in the marine and offshor
Slide 6: Palfinger at a glance
PALFINGER AT A GLANCE Leading international manufacturer of innovative lifting solutions » World market leader in loader cranes, marine cranes, wind cranes and hooklifts » Leading specialist in timber and recycling cranes, tail lifts, truck mounted forklifts and high-tech railway systems Global sale
Slide 7: 5 Continents – 7 Oceans
5 CONTINENTS – 7 OCEANS EMEA Loader cranes NORTH AMERICA Timber and recycling cranes Loader cranes CIS Tail lifts Timber and recycling cranes Loader cranes Access platforms Tail lifts Timber and recycling cranes Hooklifts Access platforms Tail lifts Truck mounted forklifts Hooklifts Access platforms
Slide 8: Strategy
STRATEGY 8
Slide 9: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE Q1 2016 approx. EUR 1.8bn* EUR 318.8m ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 14.46% ⅓ ⅓ AMERICAS 23.69% 61.85% ⅓ AMERICAS EMEA * Including JVs in China and Russia 9
Slide 10: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE Q1 2016 3.2% 2.1% 5.0% 4.2% REST OF EUROPE AFRICA AND REST OF AFRICA AND CIS 0.4% MIDDLE EAST EUROPE MIDDLE EAST FAR EAST 3.5% CIS 4.5% 7.0% 10.0% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 2.2% NORTH AMERICA CENTRAL AND SOUTH AMERICA 21.5% 52.6% 71.7% NOR
Slide 11: Segments
SEGMENTS 11
Slide 12: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE Q1 2015 Q1 2016 % EUROPEAN UNITS 200.7 226.6 +12.9% AREA UNITS 91.6 92.2 +0.7% VENTURES – – – SEGMENT EBIT Q1 2015 Q1 2016 % EUROPEAN UNITS 26.2 34.0 +29.8% AREA UNITS 1.4* 0.5 (64.3%) VENTURES (3.5) (4.7) (34.3%) * Figures were adjusted with retrospective effect (
Slide 13: European Units segment
EUROPEAN UNITS SEGMENT Strong demand for loader cranes resulted in revenue growth of 12.9% » Loader Cranes, Timber and Recycling Cranes, Access Platforms, Railway Systems and Hookflifts posted increases in sales » Increased capacity utilization of production units – also due to production for third
Slide 14: Area Units segment
AREA UNITS SEGMENT Revenue increased by 0.7% to EUR 92.2 million » 6.4% growth achieved in North America » Structural adjustments in the course of the year will lessen earnings » Local value creation in Russia fully utilized » Asia recorded increases, good capacity utilization of the new plant in Ru
Slide 15: Ventures unit
VENTURES UNIT Focus on potential acquisitions Continuation of cost-related and structural programmes 15
Slide 16: Key financials
KEY FINANCIALS 16
Slide 17: Key financials
KEY FINANCIALS Q1 2014* Q1 2015* Q1 2016 % Revenue 264.0 292.3 318.8 +9.1% EBITDA 28.9 33.2 41.0 +23.4% EBITDA margin 11.0% 11.4% 12.9% – EBIT 20.3 23.5 30.2 +28.6% EBIT margin 7.7% 8.0% 9.5% – Result before income tax 17.1 20.9 27.1 +29.6% Consolidated net result for the 11.9 14.4 18.6 +29.0% perio
Slide 18: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 350 331 319 50 314 281 292 293 300 264 267 262 251 40 248 239 250 225 200 30 30.0 30.2 150 27.0 23.5 23.9 20 20.3 20.9 100 18.0 18.1 16.1 16.8 14.5 10 50 10.4 0 0 Q1/13* Q2/13* Q3/13* Q4/13* Q1/14* Q2/14* Q3/14* Q4/14* Q1/15* Q2/15* Q3/15* Q4/15* Q1/16 EBIT 8.0% 6.5% 7
Slide 19: Current capital
CURRENT CAPITAL1) Current capital CC ratio 600 40% 500 29.1% 28.6% 28.2% 29.3% 26.0% 30% 400 300 20% 200 268 286 320 327 10% 100 256 0 0% Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 1) Average. Acc. to IFRS in EUR million. Minor rounding differences may occur. 19
Slide 20: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment* 15 13.7 12.2 12.4 12.5 11.1 10.8 9.8 10 8.6 7.4 7.5 5 0 Q1 2012* Q1 2013* Q1 2014* Q1 2015* Q1 2016 * Figures were adjusted with retrospective effect (see Annual Report 2015, pp. 146–149). Acc. . to IFRS in EUR million. Minor rou
Slide 21: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt* Equity* Gearing* % 600 100% 80.8% 492.1 505.6 500 73.4% 80% 68.6% 64.5% 397.7 400 344.0 373.5 346.8 56.7% 60% 362.3 300 274.2 233.7 40% 200 195.1 100 20% 0 0% Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 è Lower net debt and gearing Acc. to IFRS in EUR million. Minor ro
Slide 22: Free cash flows
FREE CASH FLOWS Q1 2014* Q1 2015* Q1 2016 EBTDA 25.7 30.7 38.0 +/– Non-cash result from companies at 2.0 3.3 1.7 equity +/– Change in working capital (21.0) (25.9) (8.1) +/– Cash flows from tax payments 0.0 (2.1) (0.5) Cash flows from operating activities 6.7 6.0 31.1 +/– Cash flows from investing a
Slide 23: Outlook
OUTLOOK 23
Slide 24: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Completion of product portfolio in all regions in the medium term » Focus on sustainable market development in China and Russia Continue pushing growth in marine business in spite of declining investments by oil and
Slide 25: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Visibility remains limited in Europe, but has stabilized Growth achieved in non-European regions, particularly in North America; Satisfactory demand in CIS in spite of difficult conditions; South America affected by shrinking market Structural adjustments in North
Slide 26: Investor relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone +43 662 2281-81001 Phone +43 662 2281-81100 h.ortner@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstraße 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking statem
Slide 27: Back up
BACK UP 27
Slide 28: Return on capital employed
RETURN ON CAPITAL EMPLOYED NOPLAT (rolling, past 12 months)* Non-current assets & liabilities* Net Working capital* Return on capital employed* % 900 855 40% 800 851 700 623 30% 600 588 529 598 575 500 374 20% 355 400 315 300 10.2% 9.5% 9.9% 8.8% 10% 200 6.5% 257 249 275 232 214 100 54 56 55 55 85 0
Slide 29: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 1400 1,242 1,226 1400 1,242 1,226 1200 1200 1000 1000 315 329 523 529 800 800 435 391 600 600 400 719 697 400 200 200 492 506 0 0 Q1 2015* Q1 2016 Q1 2015* Q1 2016 è Long-t
Slide 30: Financing structure as at 31 March 2016
FINANCING STRUCTURE AS AT 31 MARCH 2016 400 Financial liabilities (FL) EUR 404.5m 299 Ø Interest rate FL 2.09% 300 Ø Remaining time to maturity FL 2.84 years Cash equivalents EUR 21.9m 200 Net debt EUR 346.8m Equity ratio 41.2% 100 76 Gearing 68.6% 29 Net debt/EBITDA 2.27 0 Maturity 0–1 years 1–5 ye
Slide 31: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 31 MARCH 2016 10% 1% ISIN AT0000758305 SANY Group PALFINGER AG Number of shares 37.593.258 thereof own shares 282.756 Share price as at end EUR 25.25 of period 30% free float Market capitalization EUR 949.2m Earnings per share EUR
Slide 32: Performance of Palfinger shares since 2015
PERFORMANCE OF PALFINGER SHARES SINCE 2015 PALFINGER AG EUR 26.08 ATX DAX 2 Jan 2015 2 Jan 2016 22 Apr 2016 32
Slide 33: Research reports
RESEARCH REPORTS Deutsche Bank HSBC Erste Group Kepler Cheuvreux Hauck & Aufhäuser RCB Earnings estimates – consensus (EUR million) 2016e 2017e Revenue 1,295.2 1,351.3 EBIT 118.1 126.9 Earnings per share (EUR) 2.02 2.21 33